Solana Reveals Major Network Development
Solana (SOL) has bucked the overall market trend in the past 24 hours, jumping nearly 6% amid middling performance from most other coins in the top-10 market cap. The catalyst for this resurgence was the announcement of “token extensions” a new feature on the Solana blockchain set to deliver a swathe of new possibilities for app developers.
What are Token Extensions?
Token extensions have been in the works for over a year now, with development kicking off in the tail-end of 2022. The upgrade, originally called Token-2022, is a significant enhancement of the current Solana token standard, SPL.
Much of the token extensions’ ideology revolves around compliance, specifically, delivering new options for compliance to businesses building on Solana’s network. This is made possible by adding new permutations for who can hold certain SPL tokens, and how holders can store/transact them.
The five extensions are:
While this level of control sounds bad from a broader crypto perspective, it can be especially useful for bringing in government or business to the Solana ecosystem.
In practice, this might introduce features such as whitelisting, anonymous transfers and automatic transaction fees – elements that were previously unable to be coded into SPL tokens. The extensions may particularly benefit stablecoin issuers, who in exchange for seeing greater real-world adoption, must abide by a constantly evolving regulatory environment.